US Considers Options to Address Growing Chinese Influence in Panama
Federal Maritime Commission Chair Louis E. Sola outlines U.S. strategy for managing China's expanding role in Panama Canal-related infrastructure.
The United States is exploring options to address the increasing presence of China and Chinese companies in Panama, particularly in infrastructure projects tied to the Panama Canal, according to Louis E. Sola, Chair of the Federal Maritime Commission (FMC).
In written testimony to be presented before the U.S. Senate Commerce Committee, Sola emphasized the need for increased support for American companies operating in Panama and throughout the Americas, stating that Chinese companies should not dominate bidding for critical development contracts.
He pointed to significant Chinese investments in Panama, including billions of dollars in infrastructure projects near the canal.
Sola's remarks come amid growing concerns from U.S. lawmakers about China's influence in the region, with Senate Commerce Committee Chair Ted Cruz calling out Panama for allegedly ceding control of key infrastructure to China.
The Panama Canal, which is vital for global trade, handles more than 40% of U.S. container traffic, valued at approximately $270 billion annually.
Sola's testimony also stressed the importance of maintaining the independence of the Panama Canal Authority, following concerns about the growing involvement of Chinese firms in projects near the canal.
Panama's President, José Raúl Mulino, defended the country’s management of the canal, asserting that it would remain under Panamanian control and continue to serve global trade, including U.S. interests.
While U.S. President Donald Trump previously indicated that the U.S. would not rule out the use of military force in relation to the canal, Sola's testimony refrained from discussing such measures, focusing instead on diplomatic and commercial avenues.
The issue has gained attention after drought conditions last year led to temporary disruptions in canal operations, although normal transit volumes have been restored following a favorable rainy season.
Sola and FMC officials visited Panama in August 2024 to assess the situation and meet with local leaders, including Mulino.
The ongoing discussion reflects broader U.S. concerns about China's growing economic influence in Latin America, with Panama positioned as a strategic focal point due to the importance of the canal to both nations' trade and the global economy.
In written testimony to be presented before the U.S. Senate Commerce Committee, Sola emphasized the need for increased support for American companies operating in Panama and throughout the Americas, stating that Chinese companies should not dominate bidding for critical development contracts.
He pointed to significant Chinese investments in Panama, including billions of dollars in infrastructure projects near the canal.
Sola's remarks come amid growing concerns from U.S. lawmakers about China's influence in the region, with Senate Commerce Committee Chair Ted Cruz calling out Panama for allegedly ceding control of key infrastructure to China.
The Panama Canal, which is vital for global trade, handles more than 40% of U.S. container traffic, valued at approximately $270 billion annually.
Sola's testimony also stressed the importance of maintaining the independence of the Panama Canal Authority, following concerns about the growing involvement of Chinese firms in projects near the canal.
Panama's President, José Raúl Mulino, defended the country’s management of the canal, asserting that it would remain under Panamanian control and continue to serve global trade, including U.S. interests.
While U.S. President Donald Trump previously indicated that the U.S. would not rule out the use of military force in relation to the canal, Sola's testimony refrained from discussing such measures, focusing instead on diplomatic and commercial avenues.
The issue has gained attention after drought conditions last year led to temporary disruptions in canal operations, although normal transit volumes have been restored following a favorable rainy season.
Sola and FMC officials visited Panama in August 2024 to assess the situation and meet with local leaders, including Mulino.
The ongoing discussion reflects broader U.S. concerns about China's growing economic influence in Latin America, with Panama positioned as a strategic focal point due to the importance of the canal to both nations' trade and the global economy.
Comments
Cindy 42 days ago
Right, the panama cop will look the other way just like the NYC cop did as that lady was burning to death in the doorway of that subway train last month .
Oh ya 43 days ago
Do Americans living in Panama have any idea what will happen to them if the States tries to take over the canal ? You life and property will not be worth a plug nickel.
